Self-Employed Visa Business Plan

XXXXX A videography, photography and marketing company

Business Plan XXXXX

Contents

Page

Disclaimer

2

Executive Summary

3

The Market

5

Business Model

13

Strategies

25

The Team

29

The Financials

35

1

Disclaimer • This presentation has been prepared exclusively for the benefit and internal use of a qualified sophisticated global financier to whom it is directly addressed and delivered. This presentation is for discussion purposes only and is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by XXXXX. Neither this presentation nor any of its contents may be used for any other purpose without the prior written consent of XXXXX. • The information in this presentation is based upon forecasted numbers provided in industry literature and our best estimates.

These projections and estimations reflect prevailing conditions and our views as of this date, all of which are accordingly subject to change.

• In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public and private sources which were provided to us or which were otherwise reviewed by us. In addition, our analyses do not claim to be appraisals of the assets, or the valuation of any entity. XXXXX makes no representations as to the actual benefits which may be received in connection with a transaction nor the legal, tax or accounting effects of consummating a transaction.

• A number of statements referenced in this presentation that have been granted, are forward-looking statements, and any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, and goals, assumption of future events or performance are not statements of historical fact and may be "forward-looking statements.”

• Forward looking statements are based on expectations, estimates and projections at the time the statements are made, that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward-looking statements in this presentation may be identified through the use of words such as "expects,” "will,” "anticipates,” "estimates,” "believes,” or statements indicating certain actions "may,” "could,” or "might" occur. Any person or entity seeking to make an investment in the company should not rely on the information set forth in this business plan as complete.

• Any person or entity considering making an investment in the company must ensure that they avail themselves of all other information relating to the company, its business, and its financial projections, as well as all other information deemed necessary or desirable to support the prospectus, prior to any such investor making an investment in the company.

• Any prospective investors shall be required to represent to the company that, prior to making such investment, they have received from the company all information deemed necessary or desirable by them with respect to such investment and that such investor did not rely on any information set forth in this business plan in making any such investment.

• By accepting delivery of this plan, the recipient agrees to return this copy to the corporation at the address listed below if requested.

• Do not copy, fax, reproduce or distribute this document without written permission from XXXXX

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XXXXX – A Photography, videography & advertising business

The photography, videography and advertising services have overlapping market segments in the form of small businesses, the fashion industry etc. One cannot work without the support of others. However they are distinguished as three separate industries.

XXXXX will be established in Montreal, Quebec by XXXXX and XXXXX, two industry stalwarts. They see the potential opportunity to provide a perfect blend of photography, videography and advertising services and intend to capitalize on the same through the company, XXXXX It will provide a unique blend of services that will include studio space rental, photography, video development, content creation for advertising, multi-channel promotions, social media development, and development of marketing and advertising plans for clients.

Existing photography and videography companies deliver the product only. XXXXX, will take care of the entire marketing aspect of its clients’ business. The company will target small local businesses, fashion industry individuals and companies, and freelance artists looking to develop professional portfolios with photos and videos etc.

CAD 624,166 Net Present Value

66% Internal Rate of Return

31% Revenue CAGR*

The company will have its own studio in Montreal, Quebec and serve the market in the region. The company will bring in equity of CAD 350,000 to fund the initial costs.

259% Profits CAGR*

The owners/operators are seeking a visa under the Owner/Operator LMIA (Small Investment Immigration Program).

41%

Amounts in CAD Particulars

Year 1

Year 2

Year 3

Year 4

Year 5

Revenue

724,500

978,075

1,271,498

1,652,947

2,148,831

Gross Profit

507,150

684,653

890,048

1,157,063

1,504,182

3,264

34,203

158,960

311,041

541,676

358,264

397,467

561,427

877,468

1,424,144

Net Profit Cash Balance

Cash CAGR*

*CAGR: Compounded Annual Growth Rate

4

5

Advertising Industry – Market Overview The Canadian advertising industry grew by 2.7% in 2017 to reach a value of $1,000.5 million. The compound annual growth rate of the industry in the period 2013–17 was 2.9%.

In Canada, the increase in smartphone penetration has caused a shift in the advertising industry to a more digital field. The average amount of time an individual spends on their mobile phone in a single day is approximately 90 minutes, which equates to 23 days over the course of a year, making digital advertising a lucrative avenue to achieve growth.

It is estimated that around 69.8% of the population in Canada own a smartphone. While this figure is relatively high in comparison to some countries, there is still potential for increased ownership. This suggests that mobile advertising still has room for strong growth and is likely to become increasingly important alongside a rise in smartphone ownership.

The ability to record television shows on digital video recorders such as TiVo means that viewers are able to fast forward through commercials, and this is another reason for a reduction in television advertisements.

The online channel has become a key way for advertisers to reach the largest possible audience. Advertising through social media platforms such as Facebook and Instagram has proved fruitful for advertisers looking to target millennials, whereas advertising on websites and search engines has helped heighten exposure to older internet users.

Source: MarketLine

Canada advertising industry value: $ million, 2013–17

An improvement in the quality and range of broadband access has continued to assist the growth of digital advertising. The number of people with access to the internet is growing which has provided advertising companies with the opportunity to interact and target a wider range of consumers. The performance of the industry is forecast to follow a similar pattern with an anticipated CAGR of 3.1% for the five-year period 2017 - 2022, which is expected to drive the industry to a value of $1,165.9m by the end of 2022.

Media planning will grow in importance in the coming years, as identifying the most suitable channel to reach the target audience becomes more complex. Traditional forms of advertising will remain significant, but digital will continue to be the most lucrative channel.

Television advertising revenues in 2018 will be fuelled by classic quadrennial drivers such as the Winter Olympics, the FIFA World Cup and the US midterm elections.

6

Industry Statistics

This has helped spur spending in TV and digital advertising and in particular, mobile ads. Facebook and Google have become key platforms for digital advertising and command a large proportion of the market and currently account for a combined 49% of global digital advertising spending.

Over the top content and increased exposure of customers to online advertisers helps stimulate growth in specific advertising markets.

Traditional display advertising spending in Canada is expected to grow from CAD 591.7 million in 2015 to CAD 1,733 million in 2020.

Advertising spend on video advertising is estimated to grow from CAD 101.3 million in 2015 to CAD 352.1 million in 2020.

$5,000

Spending in million Canadian dollars

Millennials have been a key driver of the change experienced within the industry, as they are more likely to consume information online than by reading a magazine or newspaper, which has meant the use of print adverts has declined significantly.

$4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 E-mail SMS/MMS/P2P messaging Classifieds Video games Video Traditional display Search

2015 4.5 8 16.4 6.7 101.3 591.7 761.4

2016 6.9 7 27.7 7.9 161.7 915.8 182.4

2017* 9 6 39 8.7 216.2 1183.2 1540.2

2018* 11.3 5 53 9.1 279.9 1476.4 1948.2

2019* 12.5 4.5 58.5 9.2 317.7 1616.5 2161.1

2020* 13.5 4.1 63.2 9.3 352.1 1733.7 2338.5

Mobile advertising spending in Canada from 2015 to 2020, by format (in million Canadian dollars) The graph above reflects the growth of traditional display ads and video ads over the years.

7

Advertising Industry - Market Segmentation

The total media advertising spend in Canada is estimated to grow from USD 9.64 billion (CAD 12.41 billion) in 2015 to USD 13.46 billion (CAD 17.32 billion) by 2021. (Refer The graph beside)

16

14

13.46 12.79

A more diverse range of potential formats to reach customers serves to increase buyer power. As buyers shift towards more digital means of advertising, the advertising agencies are now required to shift their business plans to fit with their customers’ needs.

Digital advertisements may serve to increase specialization within the advertising industry, reducing buyer power, as only select advertising agencies can provide these specialized services. Customers in this market are not typically loyal as alternative agencies can complete the same action; the buyer is able to select the cheapest option for their needs from a range of advertising agencies, thus increasing buyer power.

12.13 12

11.4 10.74

Spending in billion U.S. dollars

Nowadays, with a plethora of entertainment media available such as TV, DVDs/Blu-rays, the internet and games consoles, the audience is less concentrated and so advertising through a variety of media formats must be considered.

10.15 10

9.64

8

6

4

2

0

2015

2016

2017*

2018*

2019*

2020*

2021*

Total media advertising spending in Canada from 2015 to 2021 (in billion U.S. dollars) 8 Source: MarketLine

Photography Industry – Market Overview

Mainstream adoption of inexpensive digital cameras, smartphones and easy-to-use photofinishing software packages has drastically changed the structure of the Photography industry in recent years. Digital photography has lowered barriers to entry for this industry, creating a major influx of independent photographers, accounting for more than 90% of all operators.

The Photography industry has started to regain its focus over the past five years, after suffering the twin effects of the economic downturn and rising external competition fueled by the rapid innovation of digital technology. While improved economic conditions, shown in falling unemployment and rising per capita disposable income, have driven consumers to increasingly spend on photography services over the current period, industry revenue growth has been tempered by an ongoing transition to business models that suit digital conditions.

In response to dwindling sales, many professional photographers have broadened their offerings to include photo-editing work and other valueadded products to attract consumers. Such products include personalized albums, canvasses, mugs, mouse pads or T-shirts, which stand out from generic products that can easily be replicated at home. Broader adoption of these products has also provided an avenue for greater creativity within the industry as a whole.

As industry participants seek to add value to their services, some photographers are also leveraging online social networks, such as Flickr and Instagram, to share photos of clients with their friends and families.

Other photographers are focusing on niche markets and products, such as offering professional portraits that can be used as profile pictures for LinkedIn or Facebook. Smaller commercial photographers are increasingly helping local businesses market their brands more effectively.

Client recommendations via online services, such as Yelp or Facebook; online photo sharing; and a strong presence on social media, are increasingly becoming key success factors for smaller companies. Profit margins have climbed due to lower production and purchase costs associated with adopting more efficient photo developing methods.

Industry revenue has been increasing over the past five years, as rising total advertising expenditure has boosted demand for industry services. Commercial photography’s strong performance has compensated for weak growth from the industry’s household and school market segments.

The era of technically advanced, yet highly accessible personal digital cameras has forced photographers to go beyond simply taking pictures to stay relevant.

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Photography Industry – Commercial Photography Finding a niche New product segments and business models will likely boost industry revenue over the coming five-year period. Greater demand for highquality photography at special occasions and sporting events will provide additional revenue for participants. Sports and church directory photos have outperformed the portrait market over the past five years because they cater to an individual’s sense of identity and unity within a group, as highlighted by the PMA. Over the next five years, demand for photography in segments other than conventional portraits will likely drive overall growth in the industry. Family and school portrait photography, which currently accounts for nearly half industry revenue, is expected to grow only modestly. Wedding photographers are also expected to experience little demand as marriage rates decline and couples spend less on weddings.

Conversely, commercial photographers are expected to experience higher demand. As corporate profit continues to be bolstered by improved economic conditions, total advertising spending will grow over the coming years.

Greater demand from commercial design agencies such as graphic design companies, will also boost business for non-traditional photographers. Demand for specialized services, such as architectural, wildlife, and sports photography, is also anticipated to increase in the coming years.

Commercial photography Commercial and industrial photographers create images for commercial purposes, such as advertising, marketing or instructional brochures or publications.

A major chunk of commercial photographers' revenue came from still-life photography for various products and catalogs.

Another important source was from photographing people (i.e. fashion shoots and corporate photography). Meanwhile, a small segment of the revenue was based on other specialties, such as architectural photos of buildings and landscapes, and technical photos of cars and machinery.

Commercial photography also includes photographers for medical, legal, passport and aerial services. In 2017, this segment is estimated to account for 30% of the market and has grown strongly over the recent period.

This segment is largely dependent on total advertising expenditure, which closely follows the movement of the overall economy. Driven by improved economic conditions over the period, total advertising expenditure has risen, stimulating demand for commercial photography services.

Additionally, the ongoing adaptation of businesses to social media has also benefited this segment, as companies have hired photographers in recent years to take professional photographs of their products or facilities and upload them to social media sites such as Facebook and Twitter.

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Photography Industry – Commercial Photography

Commercial, industrial and technical clients are anticipated to represent 30% of total revenue in 2017.

Businesses typically employ industry services for marketing and advertising purposes and, to a smaller degree, to obtain photographs for publications such as annual reports, brochures, and instructional materials distributed to employees.

Demand from the business and commercial market is closely linked to trends in advertising and promotional activities and expenditure. The largest source of revenue for commercial photographers in the past five years came from advertising agencies and design companies.

The Photography industry has a low level of concentration, with the four largest photography companies in the United States collectively generating less than 20% of total industry revenue. Small establishments dominate the industry, with sole enterprises accounting for over 90% of industry establishments.

Other factors that contribute to the low market share concentration are the low barriers to entry and the local nature of industry services.

Photographers typically operate within a small geographic area, the excepting a few well-known media or similarly specialized photographers. So, the industry is not characterized by larger corporations but is predominantly composed of smaller, local companies or individual photographers.

The publishing industry, which licenses photographs for use in textbooks, novels, and comic books, is another significant market within this segment.

This segment's share of the market has increased over the five years to 2017, as rising levels of expenditure on advertising and marketing have boosted demand for commercial photography services.

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Key Success Factors

Effective quality control: Ensuring that a quality product is always delivered is important to ongoing success.

Good project management skills: Good overall management and communication skills are particularly important to small operators.

Ability to provide goods/services in diverse locations: Many portraits and commercial photographic services are done on-site at the client's venue.

Successful operators must be willing to travel to meet their clients' needs.

Having a good technical knowledge of the product: Photographers need to be experts in taking, processing and printing images, including in digital formats. Having a good sense of lighting, style, color and design is also important.

Receiving the benefit of personal recommendations: Recommendations from satisfied clients create a crucial marketing channel for industry participants.

Production of goods currently favored by the market: With instant and digital photography becoming increasingly popular, industry participants should be able to offer digital copies of photographs and video recordings to attract more clients.

Ability to quickly adopt new technology: Agencies must be aware of new technology in the industry and general trends in technology, new media and opportunities for advertising.

Access to a multiskilled and flexible network: Operators need to have access to a skilled workforce or network of contractors which includes directors, producers, artists, composers, cameraman, screenwriters, technical staff etc.

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Business Overview Name: XXXXX Entity: Private Corporation Registered Address: XXXXX Business: Production and marketing strategies through photography, videography and advertising Goals: To provide exposure on all channels to clients and create visibility to their products and services to consumers throughout the internet, social media, commercials, movies, video clips, advertisements, etc.

Location: Montreal, Canada Geographical Focus: Canada Target Markets: Fashion industry, small local businesses, freelance artists such as actors, dancers, musicians etc.

Owners: XXXXX (President) & XXXXX (Client Relationship Manager) Shareholders: XXXXX (60%) & XXXXX (40%)

Suppliers: Studio equipment and furniture suppliers, display item suppliers etc.

Competitors: Reverse Project, Fh Studio, Kika

Investment: CAD 350,000 Uses of Funds: Studio space lease and refurbishment, Studio set-up, equipment purchase, initial marketing & operating costs.

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Services XXXXX is a diverse company which provides individuals and enterprises a mix of production and marketing strategies. They create content for clients that allows them to expand their business by building a strategic marketing and advertising plan, taking their visions and bringing them to life through photography and videography.

Photography

Advertising & Marketing Strategy

The company will offer services such as: • Content creation with photography and videography • Marketing and Advertising Plans • Multi-channel promotions • Social Media Development

Videography

Social Media Marketing

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Service Features Comprehensive Service Package In an industry where photography and videography services are distinguished from marketing services as two separate segments; XXXXX blends these services to provide a comprehensive package to clients.

Studio Rent Photography and videography are an essential part of advertising and marketing. Hence, the company will open a studio where clients can rent studio space, shoot and develop pictures and/or videos and receive advice from the company’s marketing consultants and effectively market their products and services. Stary will focus on helping a company’s production of visual marketing strategies.

Marketing content The company will create content for its clients based on their marketing ideas and build a marketing campaign around an idea using the expertise of their photography, videography and advertising skills and services.

Promotions The company will help clients promote their products and services through various channels like social media, print media, etc. Based on the visually appealing content developed, the company will help the clients with multi-channel promotions.

Social Media Development The company will help each client create a customized strategy for social media. It will create powerful images through its photography, editing and uploading these to popular social media sites like Facebook, Instagram, Twitter etc. It will create video content that resonates with the target market and ensure it is shared repeatedly across various social media channels.

Customized marketing strategies The company will come up with customized and intelligent marketing and advertising strategies for specific clients to ensure they gain the maximum mileage out of such promotions and are able to reap the benefits of the company’s services in the form of increasing brand awareness, increased sales and increasing popularity.

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Target Market Fashion Industry The primary target market of the company will be individuals and businesses in the fashion industry like apparel, accessories, jewelry and footwear businesses.

The company will work with clothing and other brands in the above businesses by doing photoshoots of their products (clothes, shoes, accessories, jewelry) and creating visuals for their collections.

As it grows, the company will look to tie-up with large companies to create commercial photoshoots of their products.

Small local businesses The company will cater to this segment, which is the biggest chunk of the target market. It will help local businesses like restaurants and cafes, grocery stores, professional service providers, florists, health and beauty stores etc. to market their products and services in a unique way and stand-out from the crowd.

Freelancer artists The company will make music clips for musicians to create the perfect visual for their beloved songs.

It will carry out photoshoots for models and help them create a portfolio for themselves; 17

Suppliers and Partners The primary suppliers of the company will be providers of studio equipment and other supplies like display materials and props etc. for photoshoots and videos. A few of the reputed suppliers in Montreal are:

Studio Economik is a retail and rental store specialized in high end pro-audio equipment. Their products include studio furniture, audio and video equipment, and accessories etc. They have products for rent as well as for sale.

Studio Specialties is a a manufacturer of seamless paper and other specialty products for the photographic and visual display industry. The company is headquartered in Montreal and operates showrooms in Montreal, Toronto, and Los Angeles.

Their customers range from photographers to visual display professionals and to the display departments of major retailers, theme parks, shopping centres and film production companies. “Studio� is dedicated to providing its customers with eye-catching products at reasonable prices and, above all, with excellent customer service.

CowboyStudio Canada, specializies in professional photographic lighting and studio equipment for the photography, film, and video industries. It sells high quality photography supplies and accessories at an affordable price.

Products include camera accessories, lighting equipment, backdrops, reflectors and light modifiers, flash lighting, studio accessories, tripods, etc.

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Location

Montreal, Quebec The company has wisely chosen to open a studio in the city of Montreal, in Quebec, Canada.

Montreal has the second-largest economy of all Canadian cities based on GDP and the largest in Quebec. The city is an important centre of commerce, finance, industry, technology, culture, world affairs and is the headquarters of the Montreal Exchange. In recent decades, the city was widely seen as less important than that of Toronto and other major Canadian cities, but it has recently experienced a revival in attention.

Industries include aerospace, electronic goods, pharmaceuticals, printed goods, software engineering, telecommunications, textile and apparel manufacturing, tobacco, petrochemicals, and transportation.

The service sector is also strong and includes civil, mechanical and process engineering, finance, higher education, and research and development.

Montreal is a major center of film and television production. The headquarters of Alliance Films and five studios of the Academy Award-winning documentary producer National Film Board of Canada are in the city, as well as the head offices of Telefilm Canada, the national feature-length film and television funding agency and TĂŠlĂŠvision de Radio-Canada.

Given its eclectic architecture and broad availability of film services and crew members, Montreal is a popular filming location for featurelength films, and sometimes stands in for European locations.

The city is also home to many recognized cultural, film and music festivals (Just For Laughs, Just For Laughs Gags, Montreal International Jazz Festival, Montreal World Film Festival and others), which contribute significantly to its economy. It is also home to one of the world's largest cultural enterprises, the Cirque du Soleil.

Montreal was referred to as "Canada's Cultural Capital" by Monocle magazine. The city is Canada's center for Frenchlanguage television productions, radio, theatre, film, multimedia, and print publishing. Montreal's many cultural communities have given it a distinct local vibe.

Montreal is Canada's second-largest media market, and the center of francophone Canada's media industry.

There are four over-the-air English-language and five French-language television stations operating in the city.

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Operations  Business Set-up

 Client Acquisition and Retention

The first and foremost part of the operations is to set up the company, take care of the legal formalities of company formation, receive funding, identify the perfect studio premises and set-up the same, tie-up with suppliers and purchase equipment, furniture, and other studio supplies etc. and get ready to commence business operations.

The most important function for the business to sustain itself and grow is customer acquisition and retention. The management will devise focused strategies to acquire clients in specific segments of the target market through networking, marketing, and referrals.

 Networking & Marketing The next step for the management of the company will be to tap into existing contacts, network with people within the industry as well as the target market. This will include attending industry related conferences and events and measure the pulse of target market needs, create awareness about the existence of the company and how it is different from its competitors, and undertake other marketing strategies to spread the word.  Recruitment and Training The third step in building the business, and an important one at that, is to is to create the perfect team of knowledgeable and skilled people with the right blend of interest, motivation and experience to contribute to the growth of the company and build a reputation for the venture as a professional in the industry.

The management will recruit and train the team to help clients with their advertising ideas and provide top-notch services.

The company will also strive to retain existing clients by addressing their advertising needs, ensuring they are satisfied, providing the best possible services at market prices and walking that extra mile to ensure they come back again as well as refer other clients.  Project Management Once clients are acquired, the management will ensure the team manages the advertising, videography and photography projects of individual clients with the utmost care.

It will adhere to deadlines, be professional, allocate time schedules and manage appointments efficiently and ensure that maximum benefit is obtained out of minimum resource usage.  Growth & Expansion The company will aim to grow and expand its business by venturing to capture wider markets, increasing their market share in the industry, getting repeat clients as well as referrals, providing a wider range of services, allowing for vertical and horizontal integration, as well as expanding geographically across Canada and the USA.

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Competitors

Reverse Project is advertising agency that owns several affiliated companies. Working as an umbrella operation and providing the full range of services, RP is fully in charge of their clients’ marketing identity and public appearance.

The company provides a wide range of services from photography to branding, and from marketing to videography. The company also caters to local start-ups and small businesses.

Fh studio produces video and photography content for both blue chip and emerging brands, from small domestic businesses to huge multi-national conglomerates. They provide video production services like advertising films, TV and web commercials, corporate videos, web content, music videos, art films, traditional animations, motion design etc.

Their photography services include advertising and commercial photography, Fashion photography, Food photography, Product photography, Packaging and Editorials for print and web etc. In addition to the above they provide Turnkey solutions, Line production, Production team, Post production, Video & Photo studios, Equipment and so much more. They also have a fully equipped 4,500 sq.ft. studio available for rent.

Kika is a full service marketing, design, and web ​agency with extensive experience in research, strategy, design and technology.​ They maintain an international client base with offices in Vancouver, Montreal and Manila. Their services include photography services, video production services, website services, online marketing services etc.

Founded in 2007, Kika brings together the perfect blend of marketing expertise, creative talent and technical savviness to turn visionary ideas into extraordinary brand experiences that propels businesses beyond the competition.

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SWOT

Strengths • Established business model • Experienced Management • Huge market demand for these services • Unique blend of photography, videography and marketing services • Demand for digital marketing expertise

Weaknesses

S W

• Yet to establish a brand name • Dependence on external funding • Time and staffing constraints initially

Opportunities

Threats

• Growth of Montreal as a cultural hub of Canada • Increasing freelance artists in need of portfolios and the company’s services • Growth in small business owners • Increasing demand from the fashion industry • Opportunities for geographic as well as service line expansion

• • • •

O

T

Economic downturns Regulations Risk of technological outdating Established competition

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Milestones

Short-Term • Establish the business • Lease premises • Refurbish premises • Acquire and set up equipment • Network within the industry • Tie-up with suppliers • Recruit staff • Initiate marketing • Acquire regular customers from small businesses • Acquire regular customers from clothing brands

Long-Term • Establish the brand • Target market specific promotion • Connect with larger companies • Grow the team in Montreal • Find and develop own studio to work out of

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Roadmap

Year 5

Year 4

Year 3

Year 2

Year 1

Globalization By year 5, the company will aim to have a nationwide presence as well as capture a section of the US market.

Expansion The focus of year 4 will be on expansion to other regions, and to offer a wider range of services. This year, the company will also venture out to target wider market segments, both geography wise and industry/business segment wise.

Stabilization Year 3 will be the year of stabilization of the business model, by adding new clients, retaining existing ones and expanding the client and industry base. The ongoing marketing activities will continue, as well as growth in the range of clients will be achieved.

Marketing and Collaboration The focus of year 2 will be to collaborate with established businesses, individuals, entrepreneurs, and others from the target markets and capture market share through strategic marketing efforts.

Setting-up The company’s initial focus will be to register the company, set up the website, recruit staff, lease premises and create awareness about the services within the target markets.

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Business Strategy

Strategic • • • • • • • •

Penetrate the Canadian advertising market Gain market share Acquire a loyal customer base Retain customers Establish as a market leader in this space Network within the industry Low loading times Explore opportunities to branch out into other similar services in the near future

Managerial • • • • •

Establish operational procedures and robust processes Develop and maintain user-friendly website Provide high-quality services Customize services based on client needs Have a strong MIS systems in place to measure, monitor and control variances from plans (both financial, and non-financial) • Attend conferences and events in the marketing space • Deliver content to clients that will help them grow and expand • Guide clients to reach their potential goal Operational • • • • •

Identify and recruit well-trained and qualified staff Have a clear software development lifecycle Address client’s immediate requirements Understand client’s products and/or services to advise the most apt strategy Have clear policies for payments, refunds, customer issues and registration

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Marketing Strategy

Website The company will build a content rich website that showcases the services it offers, the team’s skills, successfully completed projects, contact details, etc. The website will be visually appealing with high quality photos and videos of the services provided, advertising and marketing ideas created etc. The website will also be SEO optimized with appropriate keywords to ensure all relevant searches lead to a landing page on the website.

Google AdWords The company will invest in Google AdWords and Pay-PerClick advertising to drive traffic from search engines based on geo-targeting. This, along with SEO of its website will boost the search-engine visibility of the company.

Search Engine Optimization (SEO) SEO will bring paying customers to the company’s platform by honing in on those who search using key words relating to the company's services. The customers who visit the website through organic search are more likely to bookmark it and trust the brand. SEO is more of an investment than a cost.

Social Media Marketing The company will employ social media advertising methods to tap into the large amount of information available on social media. It will stretch beyond demographic and geographic data and employ deeper interest, behavioral and connection-based targeting methods.

It will ensure an increase in the relevance of the company's ads to the target market and provide a level of personalization. The company will promote its brand by using social media sites like Twitter, Instagram, and Facebook.

The company will post images and videos about their products, their uses, their benefits, etc. This will promote the products and enhance the brand image. The company will also introduce video advertising, which is more powerful and, at the same time, costs next to nothing to produce. SEO and advertising will start once the company’s platform is live.

Email Marketing The company will collect and build a database of business email addresses, and send targeted emails with special and exclusive offers to potential clients.

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Marketing Strategy

Networking and Partnerships The company will reach out to its target market and network with prospective clients by making frequent visits to local businesses in Montreal and the wider area. This will introduce the brand and its services and create an opportunity to have a personalized relationship with potential clients.

Participation in seminars and conferences The management of the company will participate in future marketing related events like seminars and conferences in and around the region to showcase its platform, build contacts and be updated about the latest trends in the industry and the market demands. A few of the events will include Montreal Digital Marketing Conference, DigiMarCon Canada etc.

Print Media Marketing The company will advertise its platform through print media, especially in newspapers and industry related magazines. This will help create awareness about the photography, videography and advertising services it can offer a client.

Collaborating with Influencers Word of mouth, press coverage and endorsements have long relied on one effective marketing tactic: third-party credibility. No matter who your target market is, the best way to earn credibility is to have people of influence tell others why they appreciate your product or service.

Hence, the company will collaborate with influencers in the region to do the same.

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Organization Structure

President

Client Relationship Manager

Photography Director

Sound Director

Cameraman

Secretary

Editors

Assistant Cameraman

Note: As the company grows, the management will recruit additional staff members like: sound directors, camera crew, a photography director, editors, and many more. The company would offer a base hourly salary ranging between CAD $22,000 To $35,000 p.a..

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Staffing Plan

Particulars Designation President Client Relationship Manager Secretary Assistant Cameraman Sound Director Cameraman Photography Director Editors Total

Year 1

Year 2

Year 3

Year 4

Year 5

1 1 1 1

4

1 1 1 1 1 1 1 1 8

1 1 1 1 1 1 1 1 8

1 1 1 1 1 1 1 1 8

1 1 1 1 1 1 1 1 8

Salary President Client Relationship Manager Secretary Assistant Cameraman Sound Director Cameraman Photography Director Editors

125,000 75,000 22,880 22,880 25,000 25,000 25,000 22,880

131,250 78,750 24,024 24,024 26,250 26,250 26,250 24,024

137,813 82,688 25,225 25,225 27,563 27,563 27,563 25,225

144,703 86,822 26,486 26,486 28,941 28,941 28,941 26,486

Amounts in CAD 151,938 91,163 27,811 27,811 30,388 30,388 30,388 27,811

Manpower Cost President Client Relationship Manager Secretary Assistant Cameraman Sound Director Cameraman Photography Director Editors Total

125,000 75,000 22,880 22,880 245,760

131,250 78,750 24,024 24,024 26,250 26,250 26,250 24,024 360,822

137,813 82,688 25,225 25,225 27,563 27,563 27,563 25,225 378,863

144,703 86,822 26,486 26,486 28,941 28,941 28,941 26,486 397,806

Amounts in CAD 151,938 91,163 27,811 27,811 30,388 30,388 30,388 27,811 417,697

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The Management

XXXXX – President and Co-Owner

XXXXX – Client Relationship Manager and Co-Owner

Job Description • Director pf photography, videography and editing • Director, screen writer and lead camera man • Oversees all aspects of the business, sales and marketing, client service, production and accounting.

Job Description • Develop client relationships • Collaborate with modelling agencies and clothing companies • Find business opportunities and communications manager

Qualifications • Background in photography and videography • Previously self-employed in the Czech Republic • 4 years experience in the industry Salary • CAD 125,000 p.a.+ 30% compensation on contracts

Qualifications • Previously active in the fashion industry • Currently active in the dance/music industry • Several years of modeling experience Salary • CAD 75,000 p.a. + 20% compensation on contracts

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Promoter’s Achievements Prior to forming XXXXX, the President and co-owner of the company XXXXX was operating under his own name as a self-employed freelance photographer and videographer. He produced a wide range of projects during this tenure as reflected in the table below:

33

Human Resource Requirements

The company will recruit a Secretary and an Assistant Cameraman based on their qualifications and experience.

Secretary

Assistant Cameraman

Job Description • Prepare contract documents • Book keeping • Organize calendar, take care of emails/calls

Job Description • Prepare and inspect all equipment • Adjust the camera lens and pull focus • Follow instruction of the director

Qualifications • Must be perfectly bilingual (English & French) • Experience with MS Word • Canadian citizen/Permanent Resident • High School Diploma

Qualifications • 3 year photo/film experience • High School Diploma • Canadian citizen/Permanent Resident

Starting Salary • CAD 22,880 p.a.

Starting Salary • CAD 22,880 p.a.

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35

Sources and Uses of Funds

Amounts in CAD

Particulars Uses of Funds Studio Space Rent Interiors and refurbishment Technology Costs Salaries Operating Costs Initial Marketing Working Capital Total

Year 1 108,000 50,000 25,000 122,880 10,910 7,245 25,965 350,000

Sources of Funds Equity Total

350,000 350,000

Uses of Funds 2% 3%

8% 31%

35% 14% 7%

Studio Space Rent

Interiors and refurbishment

Technology Costs

Salaries

Operating Costs

Initial Marketing

Working Capital

36

Projected Income Statement

Amounts in CAD

Particulars Revenue Less: Cost of Goods/Services Sold Gross Profit

Year 1 724,500 217,350 507,150

Year 2 978,075 293,423 684,653

Year 3 1,271,498 381,449 890,048

Year 4 1,652,947 495,884 1,157,063

Year 5 2,148,831 644,649 1,504,182

Less: Operating Expenses Rent Salaries Marketing Administration Professional & Legal Power and Utilities Repairs and Maintenance Insurance Depreciation Total

216,000 245,760 14,490 6,500 5,000 4,320 5,000 1,000 5,000 503,070

226,800 360,822 19,562 6,825 5,250 11,340 5,250 1,050 5,000 641,899

238,140 378,863 38,145 7,166 5,513 11,907 5,513 1,103 5,000 691,349

250,047 397,806 82,647 7,525 5,788 12,502 5,788 1,158 5,000 768,261

262,549 417,697 107,442 7,901 6,078 13,127 6,078 1,216 5,000 827,086

4,080 816 3,264

42,754 8,551 34,203

198,699 39,740 158,960

388,801 77,760 311,041

677,095 135,419 541,676

Net Profits before Tax Less: Taxes Net Profits after Tax

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Projected Cash Flow Statement Amounts in CAD

Particulars Inflows Revenue Equity Total

Year 1

Year 2

Year 3

Year 4

Year 5

724,500 350,000 1,074,500

978,075

1,271,498

1,652,947

2,148,831

978,075

1,271,498

1,652,947

2,148,831

Outflows Cost of Goods/Services Sold Rent Salaries Marketing Administration Professional & Legal Power and Utilities Repairs and Maintenance Insurance Taxes Total

217,350 216,000 245,760 14,490 6,500 5,000 4,320 5,000 1,000 816 716,236

293,423 226,800 360,822 19,562 6,825 5,250 11,340 5,250 1,050 8,551 938,872

381,449 238,140 378,863 38,145 7,166 5,513 11,907 5,513 1,103 39,740 1,107,538

495,884 250,047 397,806 82,647 7,525 5,788 12,502 5,788 1,158 77,760 1,336,906

644,649 262,549 417,697 107,442 7,901 6,078 13,127 6,078 1,216 135,419 1,602,155

Cash Surplus Opening Balance Closing Balance

358,264 358,264

39,203 358,264 397,467

163,960 397,467 561,427

316,041 561,427 877,468

546,676 877,468 1,424,144

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Financial Charts Structure of Revenues

Structure of Expenses

1% 1% 1% 1%

1%

1%

3%

0.20% 1%

3% Photographs

8%

Rent

Product Videos - 0-1 minute

12%

Salaries Marketing

Product Videos - 2-3 minutes

43%

Professional & Legal

Product Videos - 5-10 minutes

50%

Product Videos - >10 minutes

25%

Social Media

Administration

Power and Utilities

49%

Repairs and Maintenance Insurance

Depreciation Marketing & Advt. Strategy

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Key Performance Indicators Particulars Net present Value (NPV) Internal Rate of Return (IRR) Revenue Growth Profits Growth Cash Growth

Value 624,166 66% 31% 259% 41%

Amounts in CAD

Financial Summary $2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,000

$0 Revenue Gross Profit Net Profit Cash Balance

Year 1 724,500 507,150 3,264 358,264

Year 2 978,075 684,653 34,203 397,467

Year 3 1,271,498 890,048 158,960 561,427

Year 4 1,652,947 1,157,063 311,041 877,468

Year 5 2,148,831 1,504,182 541,676 1,424,144

40